Palm oil expansion, insecure land rights, and land-use conflict: A case of palm oil centre of Riau, Indonesia

Abstract

Insecure rights tend to lead to land-use conflicts. The literature mainly focuses on the impact of insecure land rights on investment. Regarding the causes, studies mainly focus on the effect of state regulations. Little attention is given to the impact of the extractive economy on land rights security. This article scrutinizes how palm oil expansion manipulates insecure land rights, leading to land-use conflict. We pay attention to a particular land right in Indonesia that is based on the´ land status letter´ (Surat Keterangan Tanah, SKT), an initial proof of land ownership that is widely held by villagers in Indonesia. Studies have neglected this land right, as most attention has been on customary rights (Adat). Our main questions are: How do palm oil companies treat the SKT in their efforts to obtain more land for their plantations, and how do farmers try to fight for their SKT rights? Using a qualitative case study in Indonesia´s Riau Province, we show that because of a shared perception that SKTs offer security, villagers did not attempt to get a full legal land certificate from the Land Agency, and palm oil companies often manipulated SKT land rights to acquire land for new plantations. Limited access to conflict resolution mechanisms hampers landholders’ efforts to enforce their land rights, and our study suggests that the security of SKT land rights depends upon landholders’ ability to fight for their rights. NGOs did not help empower them in this matter in most cases.